In an Economic Briefing in The Australian Financial Review, Lowy Institute Visiting Fellow Stephen Grenville writes that a bounce back for the flow of international capital may not be good news. Australian Financial Review, 22 February 2010, p. 23

The 'carry trade', in which capital shifts from countries with low interest rates to countries with significantly higher rates, has become an important element of international capital flows over the past decade. In a new Lowy Institute Policy Brief, Dr Stephen Grenville looks at the challenges raised by these capital flows for economic policy.The Global...

In September 2009, the Pittsburgh Summit designated the G-20 as the world’s premier forum for international cooperation. The G-20 gives East Asia a significant presence at the top table of the world economy: six regional economies, including Australia, are members. This creates important new opportunities for the region. But making use of these opportunities requires...

As financial markets have become more integrated and international capital flows larger, overseas conditions – growth, inflation, terms of trade, spare productive capacity, inflation – all impinge more strongly on the domestic economy. At the same time, the transmission channels of policy have certainly changed, so the policy instruments need to be recalibrated. In coming...

Stephen Grenville, former deputy governor of the Reserve Bank of Australia, writes that economists are again debating the role of money in monetary policy. For more than two decades, money has almost disappeared from monetary policy. Most central banks target inflation, using the short-term interest rate as their instrument. Is there any role left for...